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SCMT 3643 Exam 1

Terms in this set (150)

When products are shipped to a free trade zone, custom tariffs have to be paid when...
The goods enter the market
What two utilities link Marketing and Logistics?
Time and Place
In class, we talked about the cost leverage in logistics. The idea of cost leverage means, for example, that a company with a Net Profit of 10%, $2.50 of cost savings generates the same profit as...
a $25 increase in sales the math is (1/.10=10*2.50 or 2.50./10)
In which city is the largest cargo airport in the world located?
Hong Kong, China
Which mode of transportation would a company most likely use if they were shipping fresh products and high value goods?
Air
The characteristics listed below are an example of which type of carrier?
i. consolidating smaller shipments to save you time and money
ii. detailed knowledge of the rules and regulations that your business must comply with
iii. acting as an intermediary when transporting to a new territory
iv. arranging for and operating several different transport methods for a shipment as required
Freight Forwarder
Which one of the "Four P's" of Marketing is interface with Logistics?
Place
Which of the following is not a factor for why charter airplanes are hired to transport freight compared to traditional air-freighters?
These are all the reason they are (P.P) - The goods do not fit into a regular freighter because there are too heavy and/or too large.
- Goods need to be delivered to a location not serviced by regular
routes.
- Goods need to be delivered to an airport where the runway is substandard, or the cargo handling facilities are poor.
How are the fixed cost, lead time, flexibility, and unit cost associated with motor (truck) mode of transportation?
Low fixed, high variable, short lead time, high flexibility
What are logistics clusters?
Geographical concentrations of companies in the transportation and distribution of goods (from Yossi Sheffi)
What is a free trade zone?
They are a geographic area where goods may be landed, handled, manufactured or reconfigured, and reexported without the intervention of the customs authorities.
In air transportation, a wet lease covers what areas?
i. Fuel
ii. Flight Crew
iii. Insurance
iv. Maintenance
All of the above are covered by the owner/provider; only thing the customer has to cover are costs like airport fees
Which of the following is the best example of a Land Bridge?
Land bridges are the use of a strip of land & alternative mode of transportation. These are used as opposed to using a canal or circumventing a continent.
In the Transportation Mode Selection Chart covered in class, fixed cost has an inverse relationship with what category?
Variable Unit Cost
With higher production costs in Asia than in previous years, many companies are coming back to their countries of origins for production purposes. This is called?
Re-shoring
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